Tag Archives: AUD
FX Daily Strategist: US
USD may have further legs with dovish Fed rhetoric ignored The European session saw some profit taking with the USD softening a tad against the JPY and EUR in response to a pause in the move higher in UST yields. EURUSD has recovered further from the 1.3004 low in Asia but this seems more related […]
No further stimulus from BOJ; USDJPY edges lower
Asia’s focus was on the Bank of Japan today, awaiting its announcement after a two-day meeting. After an unusual delay, the BOJ announced no change in interest rates, holding then steady at 0.1 percent (what else can they do?) while there were no new easing steps announced.
Risk buoyed again by softer China CPI, hope for a strong PSI deal
China reported February’s inflation data this morning and CPI showed a sharp drop to 3.2% y/y from 4.5% the previous month, beating positive consensus estimates of 3.4%. Food prices fell 0.3% m/m after the Lunar New Year celebrations were completed.
Speculative Positions
Speculators scaled back on short EUR contracts and the JPY net speculative position turned short The IMM data for the period 22-28 Feb revealed: * The net short speculative EUR position decreased significantly as speculators once again scaled back on their short contracts.
Euro-outlook stabilized but still vulnerable
The Greek debt negotiations to reduce Greek debt/GDP to 120% by 2020 have been accepted as Euro zone finance ministers this morning approved the €130bn second Greek bail-out package. ECB will participate by contributing approx.
FX Daily Strategist: Europe
Greece/Eurogroup uncertainty now reigns Risk is back under pressure. The positive start to the year in global equities and in the likes of AUD, NZD and SEK in FX markets suggested a level of complacency about the Greek crisis: the sense has been that markets have assumed that through all the bluster and posturing, when […]
European FX Daily – Risk rally after Greek lawmakers pass austerity plans
– The AUD and SGD lead rally vs the USD, Asian equities up 0.2-0.7% – Greek parliament approves austerity measures – Greek PSI in focus – Firmer US data is supportive of the risk complex
Currency Outlook: GBP – Slave to EUR fortunes
The market remains fixated by the euro crisis, ensuring that GBP largely takes its cue from EUR-USD. We examine five potential catalysts for this link to break. While there is much fiscal pain to come, there are not yet grounds for GBP to move independently of EUR-USD.
Currency Weekly: Antipodean tipping point
The return of ‘risk on’ has helped propel both AUD and NZD much higher over the past two months, and both are now at record levels on a real effective basis. The mistake is to view them simply in the context of commodity price dynamics and the risk mood.
FX Ringside
Don’t blame BOE if sterling weakens In October the Bank of England (BOE) announced its decision to increase the Asset Purchase Facility (APF) by GBP 75bn to GBP 275bn for a period of four months ending only a few days ago.
AUD shoots higher as RBA leaves rates unchanged
In a surprise move Tuesday, the RBA left its cash target rate unchanged at 4.25%. With expectations, and pricing, firmly looking for a 25bp cut, the AUD shot higher across the board.
RBA Statement On Monetary Policy
At its meeting today, the Board decided to leave the cash rate unchanged at 4.25%. Information becoming available since the December meeting confirms that economic conditions in Europe were weakening late last year, with risks still skewed to the downside. Reflecting this, most forecasters have lowered their forecasts for world GDP growth this year to […]